Economics Of The Day

It was reported this morning that this weeks unemployment numbers were down to 399,000, down from 428,000 the previous week.

However, it is important to note that the four-week moving average rose to 410,750 for the Sept. 13 week from 408,750 the previous week. The moving average, regarded by economists as a truer reflection of the market than the more volatile weekly figure, has been rising since late August.

The number of people continuing to draw benefits rose to 3.68 million in the Sept. 6 week, the latest week for which figures are available. This was its highest since late June and a sign that people are still struggling to find work.

"The trend is still as discouraging as ever," said Lara Rhame, a senior economist at Brown Brothers Harriman.

My question is, a lot of job growth which occurred in the 90's was in the technology sector. This job growth was in areas I would consider "Vapor-ware" ie things which were all on paper, there was no REAL physical product. "Needs" were perceived or imagined, but never realized due to limitations in computers and technology. As these 'dreams' failed to achieve reality, companies began closing their doors.

Thus, the only way to achieve growth like we saw 7 years ago, is to have another technology-type revolution. However, hopefully this time, it will be with real products. Hardware.